Kodiak Exploration Limited--walking the Golden Mile.

• Author: Stewart, Nick
• Position: TOP JUNIOR MINERS - Kodiak Exploration Ltd. has explored Geraldton and Beardmore for gold mine

With every drill hole intersecting gold mineralization, Kodiak Exploration Ltd. has begun to realize the untapped potential in the Geraldton-Beardmore camp.

"Relative to the property we've barely scratched the tip of the iceberg, but we have done enough now that we're into high-grade chutes, and we're going to define them and follow them out to see where they go," says company president Bill Chornobay.

"We literally have just barely scratched the surface there."

Located 120 kilometres northeast of Thunder Bay, the 1,400-square-kilometre Hercules project site--what Kodiak's president refers to as "a province unto itself"--hosts a series of high-grade gold systems, most of which are located in a 30-square-kilometre area.

In this space, a handful of new systems have been discovered within the last year, one of which has helped drive the flurry of property acquisitions Kodiak has pursued throughout the last year, making it the dominant landholder in the area.

Known as the Golden Mile, this gold-bearing system has an indicated strike length of more than four kilometres, and is open to depth and along strike.

Nearly half the grab samples collected there have returned more than 10 grams per tonne (g/t) gold, while one hole released in mid-January has intersected 203 g/t over 2.9 metres. Overall, its gold mineralization is open to depth and along strike, giving Chornobay reason to believe that the 'Mile' represents a significant find for the company.

"It's not often in this exploration game, which is-extremely high risk, that you come across something like the 'Mile'," he says. "It's brand new, and it's prolific. It's an incredible new gold showing, and all the early indications are extremely positive."

Kodiak is expected to spend up to $15 million in 2008 in order to move forward on a 60,000-metre drill program at its Hercules property, where three drill rigs are already turning.

Much of this drilling will focus on the highly prospective Golden 'Mile' in order to develop a better understanding of its full geometry and scale. To this end, one rig will be set up in the central part of the Mile, a pristine kilometre-long section that has never been drilled. Another will work to follow up an earlier drill hole on the southeastern extent, which turned up 54 g/t gold over two metres and remains open.

Rigs may later move to develop a similar...